Dear Madam, dear Sir, dear Shareholder,

At end September, our consolidated proforma sales stood at €2,135 million, down 6.2% year-on-year versus 30 September 2015 on a like-for-like Arjowiggins scope, i.e. restated for the contribution of businesses sold in 2015 (Banknotes Brazil, Security Solutions) and in 2016 (Healthcare) up to their disposal dates for both fiscal years.

The lower proforma sales of Arjowiggins (-12.8% actual and -11.7% at constant exchange rates at end-September) are the main component of this decrease, while Antalis has proven resilient, despite a 5.1% decline in sales at end-September (-1.2% at constant exchange rates), as explained below.

The printing paper market decline has impacted sales in the Graphic and Creative Papers divisions, explaining only partly the lower sales of Arjowiggins. The main factor was the weakening banknote paper order book and lower business in the Security Division, in a market environment of over-capacity leading to fiercer competition and growing pressure on selling prices.

The sharp slowdown in printing paper demand also impacted the business of Antalis, particularly in Q3. This year, the demand failed to pick up again

News

In a nutshell

Outlook

Q3 2016 financial results

The new Antalis

Brainstore

Focus

08 / November 2016

Letter to Sequana’s Shareholders / November 2016 / No.8

in September after the traditionally slow summer season. Antalis nevertheless managed to limit the negative impacts of lower volumes and adverse currency fluctuations (mainly on the Pound Sterling) of €77 million over the first 9 months of FY 2016, thanks in particular to the growth of its Packaging and Visual Communication distribution activities.

The 7.5% increase of Sequana’s proforma EBITDA to €74 million results primarily from the positive effect of industrial restructuring measures in the Graphic and Creative Papers divisions. This improvement was however offset by the deteriorating product mix of Arjowiggins due to difficulties in the Security Division where a strategic review is in progress and on which we will report shortly.

Over the rest of the year, the Group expects its operating performance to remain impacted by these specific issues and by the generally weak demand in printing papers, particularly in the UK where the wait-and-see attitude of businesses due to uncertainty over the Brexit should continue to prevail. The Group therefore expects its reported FY 2016 EBITDA to be below the EBITDA reported in FY 2015.

In response to such challenging market conditions, constant innovation is an absolute necessity for the Group, and for Antalis in particular. Combined with a proposition of value-added products and services, innovation is a key factor of differentiation for a distributor, as attested by our latest achievements (see “Focus”, p. 2), and a major driver to continue gaining profitable market shares.

Business diversification in the Packaging and Visual Communication market is also among the Group’s priorities. This is already the case for Antalis where these activities account for 36% of its gross margin at end-September.

I wish to thank you warmly for your continuing trust and loyalty.

Pascal Lebard Chairman and Chief

Executive Officer

to 's Shareholders

The digital revolution did not in any way seal the doom of paper, quite the contrary! While some habits have indeed switched over to dematerialised communication, the digital world has also fostered the emergence of new printing technologies in response to requirements for customisation, short runs and enriched printed documents.

In the light of this new deal, Antalis has decided to provide graphic arts and communication professionals with a dedicated space offering the resources needed to carry out their most creative paper-based projects.

The latest Antalis Brainstore inaugurated in Paris last 12 October is positioned as THE unique showroom for paper and visual communication, with the ambitious goal of attracting 10,000 professionals from across Europe. The Brainstore agenda includes among other a discovery tour of some 800 Antalis papers (creative, green, digital, large-format, etc.) and an opportunity to receive expert advice to choose a paper depending on its purpose and printing technique.

BrainstoreThe temple of “new-generation” paper

Focus

In this all-digital era, Antalis is multiplying its initiatives to help its customers seize opportunities related

to new printing technologies and to remind them of the value added by paper in their corporate

communications. Antalis recently opened a new Brainstore in Paris, in line with this same spirit of service

and innovation.

Antalis has one conviction: paper delivers a unique emotional experience that digital media cannot convey. Its emotional plus is the touch-and-feel sensation it provides via its texture, colour and finish. In order to determine to what extent the choice of paper as a medium contributes to a successful message, Antalis has commissioned Véronique Vienne, a graphic design specialist, to interview 12 renowned international graphic designers on this topic. Their testimonials were recently published in 12 notebooks compiled in the Book of 12 (BO12). Their conclusions are unanimous: selecting the right paper is an integral part of the creative process and concept, and the success of a project depends just as much on the medium as on the layout or the printing technique. With the BO12, Antalis demonstrates once again the unparalleled power of paper in a communication project. Read more: www. bo12.com

BO12 – The importance of paper in the digital era

(1) Printing files sent via Internet

A unique service in Europe

Thanks to its exclusive partnership with Xerox, Antalis leverages the value of complementarity between paper and new technologies by proposing a unique service to its customers in Europe: a digital Xerox iGen5 printer is placed at their disposal for printing tests and assessments of the final rendering. A Xerox expert will be on standby to support customers at all steps of their projects. Each visitor can also use the converting solutions available to produce a prototype or to print a project on large-format media dedicated to visual communication. These services will ultimately be complemented with a web-to-print(1) solution to customise documents, and a training centre intended in particular to guide customers in the shift from offset to digital printing.

News

Letter to Sequana’s Shareholders / November 2016 / No.8

Maine M1: A paper in the limelight

Drupa, the world’s leading trade fair devoted to graphic and industrial printing, selected the flame-retardant paper Maine M1 manufactured by Arjowiggins Graphic to produce monumental paper-made decoration displays at the show. The Maine M1 range ensures public safety by preventing the spread of fire. A benchmark in the market of flame-retardant papers, the FSC®-certified Maine M1 paper is recommended in particular for POS displays, billboards, banners and posters in public indoor places. Galeries Lafayette has also chosen the Maine M1 paper to design this year’s Christmas tree displayed under the cupola of the Paris store and dressed up exclusively in Maine M1 paper.

Image® Digicolor®: The family is growing

Since September, the Image® Digicolor® family that contained only uncoated papers until then, has grown to include coated papers in Silk & Gloss version. The finishes cover numerous applications such as advertising leaflets, greeting cards, direct marketing or publishing. The Image® Digicolor® range offers a large number of various formats suitable for all dry toner digital printers. Tested and approved by the leading printer manufacturers (Kodak, Konica Minolta, Ricoh and Xerox), it is ideal for offset printing businesses equipped with digital printers, photocopy shops and integrated photocopying centres.

High-security banknotes

A pioneer in watermark technology, Arjowiggins Security continues to explore

new techniques to further improve the quality and security of watermarks. In the wake of the successful Pixel™ watermark adopted by 10 countries accounting for 30 billion banknotes in circulation, Arjowiggins Security is now offering Vision™, a new-generation watermark that provides a more precise definition than traditional watermarks, enhanced authentication and even more security.

Cofidis and Monabanq choose Cyclus

In a concern for mitigating the impact of their activities on the environment, Cofidis and Monabanq opted to use the 100% recycled Cyclus range for all paper communications sent to their customers. Sylvie SAS, Purchasing Department Manager at Cofidis Participations Group explains: “We chose Cyclus recycled papers on the one hand to guarantee perfect legibility of the information communicated to our customers regardless of the medium used; and on the other hand, to contribute to our environmentally-friendly approach.”

FIAC 2016 Catalogue: Trendy bookmarks

For the 2016 edition of the FIAC exhibition catalogue, Arjowiggins Creative Papers partnered with the design agency jäger & jäger on an innovative bookmark concept. The idea was to design unique bookmarks for each of the 10,000 catalogue copies, each with a motif illustrating a reference to literature, art, design, print or typography, a project made possible thanks to the new Arjowiggins range of digital printing papers. Individual motifs were extracted randomly using HP Smartstream Mosaic technology and printed with the HP Indigo technology using the new i-Tone® surface treatment. This technique delivers high-quality digital printing on papers as diversified as Keaykolour, Conqueror Vergé, Curious Collection Metallics, Skin, or Pop’set.

Retailers succumb to Xerox's appeal

Backed by its European organisation and leveraging the fame of the Xerox brand for which it holds the exclusive license, Antalis has launched a new range of paper reams addressing the retail industry. And success came quickly with the leading retail chains in the sectors of entertainment, multimedia and household appliances. Within less than a year, Antalis has thus become the exclusive supplier of Darty banners: BCC in the Netherlands, Van Den Borre in Belgium, MisterGooddeal and Darty in France. Antalis also enjoyed another success with Boulanger by launching a unique POS advertising concept showcasing the Xerox paper range.

TFM Industrial: A package deal

Antalis continues its expansion strategy in the packaging market, with the acquisition of TFM Industrial, a Peruvian specialist distributor of coding solutions and technical packaging to the food, pharmaceutical and building industries. TFM Industrial reported annual sales of around €5 million. This acquisition will strengthen Antalis’ footprint in Latin America where the group already has solid market positions in this business, particularly in Chile.

Dressing up the walls

The Coala line of flexible media dedicated to large-format printing, initially launched in 2012, has been steadily fleshed out since then. With Coala Wall Design, the range now covers interior design applications rejuvenated thanks to digital printing. Any type of wall can be customized with this concept that has already attracted numerous renowned businesses. Thus, Café Mignon and its 40 establishments each adopted a different design style, similarly to the Espace Dalí for the scenography of its exhibit entitled “Joann Sfar - Salvador Dalí, Une seconde avant l’éveil ”. Antalis wallpapers are customizable, pre-sized, easy to install and remove, printable on demand in very short runs and on a large variety of substrates. They are ideally suited for quick changes of decor that increasingly tend to become the norm today.

Letter to Sequana’s Shareholders / November 2016 / No.8

Letter to Sequana’s Shareholders / November 2016 / No.8

Credits Antalis and Arjowiggins© photo library, Isabelle Grosse, Cristel Sasso/Capa Pictures. This Newsletter is printed on Rives Sensation Gloss Shetland 100% Recycled Bright White Recycled 170g, an FSC® certified paper manufactured by Arjowiggins and distributed by Antalis.

Design and production:

Administration of shareholdingsBNP Paribas Securities ServicesShareholders Relations9 rue du Débarcadère, 93500 Pantin – FranceTel.: +33 0 826 109 119

Contact usTel.: +33 01 58 04 22 80Mailing address: Sequana – Shareholders Relations 8 rue de Seine, 92100 Boulogne-Billancourt – FranceE-mail: contact@sequana.com

Outlook

Given the major changes in the reporting structure in 2016 and in 2015, the operating data presented and commented below have been restated for the contribution of the businesses sold, up to the date of their disposal for both fiscal years.

Sales: €694 million

Sequana's Q3 2016 sales dropped 10.7% (-10.5% for Antalis and -11.3% for Arjowiggins), and were down 6.7% at constant exchange rates (-5.8% for Antalis and -9.2% for Arjowiggins). This drop is attributable to lower printing paper volumes affecting both Group businesses, and to the persistently weak order book for banknote paper (Security Division). The adverse effect of currency fluctuations (mainly on the Pound Sterling impacting Antalis) amounted to €33 million.

EBITDA: €22 million

EBITDA declined by €1 million or -7.1% to €22 million. The lower printing paper volumes and the deterioration in Arjowiggins' product mix due to lower levels of business for banknote paper have offset the positive effects of industrial restructuring measures and lower raw material and energy costs. Sequana nevertheless maintained its EBITDA margin at 3.1% of sales (+0.1 point).

Outlook

Sequana does not expect any improvement in Q4 versus the business trends noted in Q3, especially in the UK where uncertainty over Brexit will continue to weigh on business, and in the Security division which will continue to suffer the consequences of current overcapacity in the market.Sequana expects its reported 2016 full-year EBITDA to be down on its 2015 reported EBITDA, with a net debt/EBITDA ratio ranging between 3.0x and 3.5x at year-end 2016.

Read the press release on Q3 results at http://www.sequana.com/en/finance/regulated-information/regulated-press-releases/

Q3 2016 financial results

Highlights

June• Sale of Arjowiggins Healthcare

(production of papers for the medical sector) to Meeschaert Private Equity jointly in partnership with the company's executive management team, for an enterprise value of €33 million.

• Sale of the 15% equity stake held by Arjowiggins in Arjo Systems and Arjo Solutions to Impala Group for €7 million.

October• Arjowiggins signed an agreement to

sell (promesse de vente) with Global Hygiène for Charavines site. This transaction will only have a marginal impact on the results of Arjowiggins and on Sequana’s debt.

November• Antalis acquires FTM Industrial,

a packaging product distributor in Peru with sales of around €5 million.

Within a year, the scope of Arjowiggins has been significantly reduced further to the disposals

of the Security Solutions and Banknotes Brazil businesses (in HY1 2015) and of the Healthcare

business (in HY1 2016).